Zubu Client Sentiment Nifty50 Report & Market Recap (Jan-07-2021)

Zubu Client Sentiment Nifty50 Report:

It is a Post Market Analysis, by which one can understand Retail trader’s sentiment and discover who was going long and short, the percentage change over time, and whether market signals are bullish or bearish.

Zubu Client Sentiment Nifty50 Report Jan-07-2021)

Nifty50 retail trader data shows 45.09% of traders are net-long ,while the number of retail traders net-short was 54.91%. FII’s created few longs 321 & unwinded decent shorts -2812, while retailers created few longs 638 & few shorts 945.

After a gap-up opening, the markets continued to slide down throughout the day and turned negative in the last hour of trading. However, 27 stocks of the Nifty50 closed in the green. Among the sectoral indices, Nifty Metal (+3.8%) and Nifty Realty (+1.3%) were the top gainers, whereas Nifty FMCG (-0.8%) and Nifty IT (-0.6%) were the top losers.

IDFC soars on strong loan growth

Shares of IDFC Bank gained nearly 11% after the bank reported strong growth in its retail loans in Q3. The retail category grew 24% YoY and now constitutes 64% of the bank’s overall funded assets. Customer deposits, too, grew 41%, with retail deposits growing 100% over Q3FY20 (18% over Q2FY21). This has boosted the bank’s CASA ratio to 44.6% this quarter versus 36.5% in Q2FY21.

Rising US truck sales help forging companies

Shares of forging companies such as Bharat Forge (+8.8%) and Ramkrishna Forging (+3.9%) saw strong buying interest today. Orders for heavy trucks in the US grew 165% YoY in December.
Rising US truck sales augur well for Indian forging companies, which typically supply chassis components. Bharat Forge and Ramkrishna Forgings derive nearly 60% and 40% revenues from exports, respectively, with a focus on the US market.

Sobha Ltd rises on optimistic Q3 update

The Bengaluru-based real estate company achieved its highest-ever quarterly sales in Q3, without any major launch. The company achieved sales of 11.3 lakh sq.ft., an increase of around 6% YoY. It was able to garner an average price realisation of ₹7,830/sq.ft., a rise of 15% YoY. The stock rose 7.8% today supported by an increase in volumes, after rising nearly 86% in Q3.

Metals stocks gain on demand outlook

A recovery in production and a number of price hikes in Q3 suggests improved fortunes for metal companies. Amid rising raw material prices, the street is particularly bullish on integrated metals players, which are also involved in mining coal and iron ore.Tata Steel (+5.2%) not only led the steel stocks but was also the top gainer in the Nifty50. Meanwhile, Jindal Steel (+4.6%), SAIL (+2.3%) and JSW Steel (+0.6%) also closed with gains.

Closing bell

Today, the Indian markets ignored positive global cues, as IT and banking heavyweights dragged the benchmark indices down. Meanwhile, the Nifty Midcap 100 and Smallcap 100 indices continued to rise and are playing catch-up. While the Nifty50 is about 15% higher than its pre-Covid peak, the Nifty Midcap 100 has just about recovered and the Nifty Smallcap 100 is still about 27% below its 2018 lifetime highs. Tomorrow, IT giant TCS is expected to announce its Q3 results, and the street expects up to 4% constant currency revenue growth.

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